In this post, we will explain what tax-managed separately managed accounts (SMAs) are, clarify terms relative to performance measurement for tax-managed SMAs, and the challenges faced by performance professionals in measuring and attributing performance. After-Tax Returns Investors who care about maximizing after-tax returns may sometimes consider using tax-managed SMAs as part of their portfolio strategy.
Hedge Funds
Report Timing with Hedge Funds
By Michael Beck, CIPM, CFP (R), Vice President, Glenmede Trust Company. One of the main issues when adding hedge funds to a portfolio is the timing of reports. Hedge funds and other non-liquid alternatives tend not to be priced quickly after the month end. This can lead to an issue in reporting performance to the
Cybersecurity
Cybersecurity: What to Look for?
Cybersecurity threats are diverse, ranging from government sanctioned and well-resourced institutions, sophisticated criminal enterprises and disillusioned employees. Most breaches can be averted by following best practices. Others are wholly unavoidable irrespective of the systems or technology that fund managers have at their disposal. Institutional investors need to be cognizant of the threats facing their hedge
Guest Blog
Strategy Specific Hedge Fund Operational Due Diligence
Guest Contributor: Jason Scharfman, Managing Partner, Corgentum Consulting, LLC When investors approach a hedge fund to begin the operational due diligence process, they will have likely done some degree of investment due diligence already. During the investment due diligence process, investors are often accustomed to the idea of framing their due diligence approach in a
Guest Blog
The Rising Voice of Transparency and Control in Fund Operations
By John Herlihy and Geoff Hodge, Milestone Group Boards, auditors, management and shareholders have been making their voices heard: among the alphabet soup of new fund management regulations, transparency and control are the common themes. We are now indisputably at the point where they are a required core competency among fund managers and operators. On
Dodd-Frank
“What is” a Hedge Fund
A hedge fund is a private partnership investment fund that uses complex investment strategies with the goal of maximizing returns on the funds’ underlying investments. Accredited investors run hedge funds and pool money in order to make risky, yet profitable investments. Therefore, despite the fact that “hedging” implies risk reduction, hedge funds tend to be
Compliance
What Can Hedge Fund Administrators Learn from Madonna?
Guest Contributor: George Michaels, CEO, G2 FinTech One could say Madonna owes a great deal of her multi-decade success to her ability to “reinvent” herself and keep pace with the ever-changing music scene. The hedge fund administration industry could learn a thing or two from this strategy. Hedge fund “admins” are perfectly poised to capitalize
Hedge Funds
D-Day for IFRS 13, It’s Time to Move
The end of Q1, 2013 brings its own form of D-Day for the investment funds industry: Data Day. For it is on this date that International Financial Reporting Standards 13 Fair Value Measurement (IFRS 13) becomes effective. The aim of IFRS 13 is to introduce a consistent global definition of fair value, along with enhanced
Hedge Funds
“What Is” The JOBS Act?
The Jumpstart Our Business Startups (JOBS) Act, signed into law by President Obama on April 2012, is intended to encourage the growth of small businesses and start-ups by helping with funding and easing federal regulations in order to increase the national employment rate. A fundamental provision of the JOBS Act is the creation of an
Compliance
“What is” Form PF?
Form PF (private fund) is a new SEC rule that requires private fund advisers to report regulatory assets under management, dubbed RAUM, to the Financial Stability Oversight Council (FSOC), an organization established under Dodd-Frank in order to monitor risks within the financial sector. The Form PF requirements are intended to provide risk exposure statistics regarding
